SoftBank will buy a US$2 billion (A$3.07 billion) stake in Intel, as SoftBank expands its investments in semiconductors and artificial intelligence technology.
Under the agreement, SoftBank will pay US$23 per share to purchase around 2% of Intel’s stock, making SoftBank the company’s fifth-largest shareholder.
“Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation. This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role,” said SoftBank CEO Masayoshi Son.
“We are very pleased to deepen our relationship with SoftBank, a company that’s at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership,” said Intel CEO Lip-Bu Tan.
According to the companies, SoftBank’s investment in Intel is targeted at expanding artificial intelligence technologies and infrastructure.
SoftBank currently owns semiconductor designer Arm, and agreed in March to purchase chip designing startup Ampere Computing for US$6.5 billion. It has also committed $30 billion to OpenAI for artificial intelligence development.
Intel has struggled to capitalise on the demand for AI chips in recent years, and reported falling revenue for three consecutive quarters before Tan took over as CEO in March. The company’s shares lost 60% of their value across 2024.
The United States government is reportedly considering acquiring a 10% stake in Intel. U.S. President Donald Trump called for Tan to step down as CEO earlier this month, alleging a conflict of interest in Tan’s financial ties to China.
Trump has also said the U.S. will impose tariffs of up to 100% on imported semiconductors. Intel is based in the U.S., with its main factories in Oregon and Arizona.
Intel’s (NASDAQ: INTC) share price jumped to US$24.93 in after-hours trading, following its close at $23.66. Its market capitalisation is $103.56 billion.
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